UAE economy survived economic impact of Covid-19: IMF Official

UAE economy survived economic impact of Covid-19: IMF Official

The UAE economy has quickly survived the economic impact of the Covid-19, with near-term economic growth being strong, underpinned by a rebound in domestic activity, while elevated oil prices support high surpluses in the fiscal and external balances, according to a top IMF official. According to the latest IMF report, UAE GDP growth is projected to reach above 6 per cent in 2022, up from 3.8 per cent last year. With global trends, inflation is expected to average just over 5 per cent this year. Despite the increase in oil prices and the gradual easing of Covid crisis-related fiscal support for businesses and households, fiscal surpluses have increased further. Increased global uncertainty led to larger financial inflows, contributing to rapid real estate price growth in some segments. “Economic growth has been robust this year, led by a strong rebound in tourism, construction, and activity related to the Dubai World Expo, as well as higher oil production in line with the OPEC+ production agreements. The economic recovery is gaining momentum driven by return of economic cycle,” Jihad Azour, director of Middle East and Central Asia Department, International Monetary Fund, told state news agency . He added that the UAE economic outlook